What If You Lose Your Job?

No one wants to think about the possibility of being retrenched or of losing their job in any way – basically, of the cash flow drying up. But what if it does?

- Andile Nkosi

As a result of the current economic climate, businesses have resorted to downsizing. If you don’t have the precautions in place to guard against retrenchment, you could struggle to meet your financial needs and obligations while you search for new employment. We asked Mariette Tappan, executive financial advisor at Liberty, about retrenchment insurance.

What is retrenchment insurance?

‘Retrenchment is just one of the risks that could negatively impact your income. A long illness, for example, is another. The term commonly used is ‘income protection’, and it’s a flexible package of benefits with the aim of protecting you against a wide range of risks. You decide on the extent of your coverage based on your life stage and the likely risks you might face. The volatile economy is a key risk, so it’s important to find ways to counter that.’